Trump budget will hike defence spending by $54B

Investors are reporting they need more confirmation than simply verbal commitments from the president to squelch fears that the "Trump bump" isn't merely a fleeting market occurrence, Bloomberg reports.

President Donald Trump's first budget proposal will seek a almost 10% boost in defense spending, with offsetting cuts from nondefense agencies, administration officials said Monday.

Two officials familiar with Trump's proposal said the planned defence spending increase would be financed partly by cuts to the State Department, Environmental Protection Agency and other non-defence programs.

The Trump administration is expected to released a pared-down "skinny budget" the week of March 13 and a fuller list of budget requests by the end of March or early April, according to multiple congressional Republican aides who requested anonymity to discuss a process that is just starting.

Tentative proposals for the 2018 budget year that begins October 1 are being sent to agencies, which will have a chance to propose changes to the cuts as part of a longstanding tradition at the budget office.

In an interview with Fox News Channel's "Sunday Morning Futures", Treasury Secretary Steven Mnuchin said cuts to Social Security and Medicare would not be part of the administration's first budget.

One of the officials said Trump's request for the Pentagon included more money for shipbuilding, military aircraft and establishing "a more robust presence in key worldwide waterways and choke points" such as the Strait of Hormuz and South China Sea. "We're going to make sure this works", he said. The official said Trump's first budget will not address taxes or mandatory spending.

On Feb. 27, the Trump administration will propose increasing the defense budget by 10 percent with an influx of $54 billion. In the campaign Trump promised huge tax cuts but top GOP leaders like House Speaker Paul Ryan of Wisconsin don't want this year's tax reform drive to add to the budget deficit.